Black Country Waste Partnership

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Black Country Waste Partnership

• West Midlands Highway Alliance
• West Midlands Regional Improvement and
• Efficiency Partnership - RIEP
• Keith Gordon
• Programme Manager
• WM RIEP

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Key Objectives

• The purpose of the WMHA
• The Commodity Procurement Programme
• The Future

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Current Membership

• County (4) Metropolitan (6)
• Worcestershire Sandwell
• Warwickshire Solihull
• Staffordshire Dudley
• Shropshire Wolverhampton
• Walsall
• Coventry
• Unitary (3)
• Telford
• Herefordshire
• Stoke
• Birmingham still to join (but participated in
  Salt)

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• West Midlands Highway Alliance (WMHA)
• History
• Separated from the Midlands Highway Alliance in
  June 2007 to have more local focus and
  engagement.
• Inaugural meeting June 2007 four meetings since
  Chaired by John Hobbs and attended by a mix of
  Heads of Service and Service Managers
• Aims
• To support the fourteen Local Highway Authorities
  improve highway related services in the West
  Midlands and support efficient delivery of
  services and enhance customer satisfaction
• Objectives
• Develop and embed best practices principles of
  collaboration and partnering throughout the
  supply chain, including business process
  re-engineering, innovation, capacity and
  capability building, contract management and
  commodities procurement
• Identify and support those local authorities
  improve their operational and business
  performance commensurate with the national top
  quartile performers
• Support the development and improvement of
  skills, knowledge and awareness within Local
  Authorities to deliver best in class
  performance.

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• Key Opportunities
• Sharing knowledge, best practice and performance
  information that enhances the collective benefits
  across the region
• Rising to the challenge of CSR07 to deliver
  approx. 60 million cashable savings by 20010/11
• Having a realistic programme that makes a
  difference yet recognises everyone cant join
  at the same time.
• Engage all customers so they contribute equally
  and therefore gain the shared benefit of
  delivering improved services and better value for
  money
• Co-ordinating the current fragmented procurement
  and process environment to gain synergies and
  collaborative improvement and efficiency benefits
  
• Consistent approaches to operations and
  measurement, e.g. six forms of patching!
• Having adequate leadership, commitment and
  resources to deliver a significant programme
• Recognise the potentially conflicting issues of
  sustainability, e.g trading local and the
  environment (recycling and methods)

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The Current Programme - 215k in 2008/9

• Asset Management (20k) Solihull
• Patching (30k) Staffordshire
• Sustainable Procurement (30k) (Shropshire)
• Regional Framework (0k) Staffordshire
• Systems Processes (85k) Three projects in
  Stoke, Wolverhampton and Walsall
• Case Studies Best Practice (10k)
• Performance Framework (0k) Worcestershire
• Programme Management (40k) WMRIEP
• Total Spend in 2008/9 - 215k

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Working in Partnership

• Early on we agreed to use ESPO as our delivery
  partner as they had full time dedicated and
  expert staff
• ESPO already worked with a number (primarily in
  the East Midlands)
• 1st phase programme agreed by WMHA consultation
  via on-line survey and subsequent discussion at
  the Programme Board
• Worked in conjunction with the EMHA to explore
  potential synergies
• Developed a joint approach where possible
• Agreed a programme using the ESPO renewal
  programme as the basis

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The 1st Phase Programme 2008 -2010

• Salt
• Street lighting columns and furniture
• Surface dressing, including black top and scrim.
• Specialist treatments, e.g. shell grip surfacing
  at black spots
• Safety fencing
• White lining
• Street Lighting Energy
• Vehicles (including spot and longer term hire)
• Plus
• Publicise other ESPO contracts directly and via
  the WMRIEP hub including concrete, plant hire,
  tyres and road stone aggregates. The hub can be
  accessed via
• http//procurementhub.wmcoe.gov.uk

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How does the partnership work?

• Built on trust and expertise
• Agree the programme in advance
• Agree to provide accurate and comprehensive
  information
• Plan the timescales well in advance (and allow
  for slippage)
• Agree who is going to participate
• Regular programme meetings to review progress
• Report back to WMHA on progress
• Celebrate success, i.e. Salt saved 700k over 3
  years!
• Recognise that without f/t resources nothing
  would get done!

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The Salt Procurement Learning Lessons

• Our 1st Success saved 700k. At least 10 out of
  14 WMHA participants
• See the Case Study
• Built confidence
• Standardisation and collaboration works even in
  hard to do sectors
• Shows we can work together
• Provides a stepping stone to bigger picture
  issues. E.g. MHA Contract 3 framework
• Gives a feel good factor
• Last meeting on 27th June everyone attended
  with a positive attitude
• The WMHA is product focussed not a talking shop!
• Longer term target to deliver 5 million over 3
  years

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Contact details

• Keith Gordon West Midlands Regional Improvement
  Partnership
• Telephone [phone]
• Email kgordon_at_wmcoe.gov.uk
• www.wmcoe.gov.uk

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• Competitive Dialogue
• A Practitioners View
• By
• Peter Parkes
• Head of Strategic Projects
• Worcestershire County Council

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Background

• EU Directive 2004/18/EC
• UK Law Public Contracts Regulations 2006
• Came into force 1st January 2006
• Seeks to replace Negotiated Procedure for
  Particularly Complex Projects
• Similar But only limited discussions and
  clarifications after selection of Preferred
  Bidder.

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Position in 2006

• Limited practical experience
• Regulations provided no Guidance
• No Case Law
• Lots of legal opinion But not the slightest hint
  about how you might go about it!.

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The Worcester Library and History Centre

• The Worcester Library and History Centre
  (WLHC) will realise a shared vision for a unique
  Centre of Knowledge that meets the information
  and learning needs of the whole community.
• It will be housed in a landmark building and
  bring together a set of services never tried
  before, setting new and innovative standards for
  others to follow.
• It will be delivered by a groundbreaking
  partnership between the University, the County
  Council, the City Council and Advantage West
  Midlands. It will provide a once in a lifetime
  opportunity of strategic significance, and will
  raise the profile of Worcester, both in the UK
  and overseas.
• It will promote life long learning, social
  inclusion and raise aspirations in the broadest
  sense for the whole community, regardless of age,
  background or ability.
• And by the way.it will be a PFI project!

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WLHC A Particularly Complex Project

• PFI
• Unique range of services
• Public/Academic Library First in the UK
• Multi-client
• Wide range of Stakeholders
• Includes a commercial element

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Business Case

• By working in Partnership, joint savings of NPV
  10.85m over 25 year life of the PFI
• With PFI credits saving of NPV 33.73m over 25
  years
• This levered 10m HEFCE funding and 7m from
  Advantage West Midlands

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The Procurement Process

Design a process that fits your circumstances
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Market Worries

• That dialogue would lead to inappropriate use of
  an individual bidders intellectual property and
  commercially sensitive information
• That the costs of CD would prove prohibitive

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Pre OJEU Notice

• Be clear about your ambitions objectives
• Understand design quality standards Vs
  affordability
• Soft Market Testing and stay on message
• Know what you want and build confidence
• Do not underestimate resources
• Joint Project Team 15 People
• Development budget m

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OJEU Notice

• Similar to other forms of procurement
• Think about de-selection along the way
• Most Economically Advantageous Tender (Mandatory)
• Be prepared for expressions of interest
• Bidders Open Day
• Send out PQQs

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Bidders Open Day
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Selection of Participants

• PQQ
• Twin tracked PQQ and RTPICD
• Six consortiums formally submitted
• Pass/fail PQQ
• Relatively simple evaluation of RTPICD
• Used this to shortlist down to three

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Doing Things Differently

• Allow Stakeholders to influence through
  consultation
• Staff engagement
• Public Presentations and events
• Commissioned market research
• Themed workshops
• Redefining Library Services
• Local Distinctiveness
• Children Young People
• Arts

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Preparation for CD is the Key

• Full engagement of service Heads
• Tested our ideas so we could answer questions
• Prepared a Detailed Design Statement new under
  PFI
• Understand what you want to evaluate
• Wrote manual and provided training
• Issue ITPCD

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Managing the Competitive Dialogue

• Bid Period Pre-planned series of managed
  interactions
• 4 days per bidder
• 2 ad-hoc days each
• Legal sessions
• Financial sessions
• Formal RFI and Clarification logs

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Initial Submission

• Wide and complex evaluation
• Internal teams
• External Advisors
• Local and National Groups
• Stakeholders
• Use of AWARD
• Potential for de-selection

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Further Dialogue

• Initial feedback
• Shared Issues Logs
• Further managed sessions to address these issues
• Updated submissions against these items alone
• Updated evaluation
• Potential for de-selection
• OGC/HMT guidance on using the procedure 2008

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Request Final Tenders

• Dialogue ends - no further negotiation
• Final submission requirements - build on initial
  submission, not a completely new one
• Submission to respond to Logs
• Final update of evaluation
• Selection of Preferred Bidder

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Overall Timing

• OBC Sept 06
• OJEU Dec 06
• Bidders Day Jan 07
• Pre-Qualification Mar 07
• Short-list June 07
• Issue ITPCD Oct 07
• Initial Submissions Feb 08
• Initial Evaluation May 08
• Final Tenders Nov 08
• Preferred Bidder Jan 09
• Cont Close July 09

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Lessons Learnt

• Seek legal advice.but!
• Preparation is vital
• Have realistic resources in place
• Get the right advisors
• Be clear about what you need!
• Be clear about de-selection
• Face the reality of negotiation
• And Good Luck!

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• Competitive Dialogue
• A Practitioners View
• By
• Peter Parkes
• Head of Strategic Projects
• Worcestershire County Council

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Construction Framework Partnerships Worcestershire
County Councils Approach
Peter Lines. RIBA. Design Unit Manager.
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WCC Property Services..

• Team of 160 property professionals and support
  staff based at County Hall, Worcester.
• Capital programme value 45 / 50M.
• Maintenance programme value 8 / 9M.
• Strategy and Policy Unit.
• Design Unit.
• Client support Unit.
• Consultant framework / all professionals.
• Recognised for the design of high quality
  buildings and excellent asset management.

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..issues driving Frameworks

• Traditional procurement methods. need to move
  on !
• Latham / Egan philosophy.
• Maintaining cost control. tender to handover.
• Achieve cost savings via suppliers .
• Increase quality of construction via
  collaboration.
• Efficient construction programmes. accurate
  timescales.
• Efficient delivery via collaboration.

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.....other drivers for Frameworks

• Local and National
• Local
• The need for Worcestershire County Council to
  make the very best use of its assets.
• Property Services having a key role in guiding
  and supporting a truly Corporate asset management
  strategy which uses buildings, finance and people
  in the most cost effective way.

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• National
• The modernisation agenda is being driven
  nationally by the Constructing Excellence
  initiative which seeks to bring about significant
  change in the way in which construction projects
  are delivered driving down cost while at the same
  time improving market efficiency.

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To achieve this we need to

• Have processes which ensure we invest in
  the right assets investment decisions
  linked to Council priorities, directed by the
  latest thinking on service delivery.
• To make decisions based on strong business
  grounds proposals being supported by a business
  case with full evaluation of the options, issues
  and risks.

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to

• Introduce new and innovative procurement
  practices. Collaborative construction method for
  the delivery of projects.
• Change the role of our Property Services staff
  
• Setting design standards.
• Championing sustainability in the built
  environment.
• Acting as project managers of the design /
  delivery team and engaging with contractors at a
  very early stage.

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to

• Evaluate the performance of the team to date.
• Cost Monitoring and Benchmarking
• Determine the construction range for projects.
• Workload and project range
• Examine potential providers of Frameworks.
• Research existing Frameworks.

• Examine potential partners to join Framework.

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Cost Monitoring and Benchmarking

• Property Services carry out the monitoring of
  project costs against external national
  benchmarks.
• Figures for 2005/06 were audited by and agreed
  with Franklin and Andrews (consultants appointed
  to review Property Services in this area).
• The analysis for 2006/07 is based on a total of
  114 projects tendered in the financial year with
  a total value of 23 million. The figures
  include the full diversity of projects managed by
  Property Services with a range of values from
  1,050 to 3.75 million.

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The analysis is split into the following
performance areas and is compared with audited
figures for 2005/06.
a. Percentage variance Net Build Cost / m2
compare to external Benchmark Cost / m2
(Building Cost Information Service.
BCIS) New Build Projects
Alteration Projects 2006/07 1.8
-18.7 2005/06 2.2 -20.9
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• Construction fee benchmarks - Fees as a
  percentage of construction cost.
• Actual External Benchmark (BCIS)
• 2006/07 11.8 11.5
• 2005/06 11.7 11.51
• The fee of indicated is the total fee charged
  by Property Services including costs associated
  with consultants employed on the projects, for
  all schemes in the stated financial year,
  compared with the total construction out-turn
  costs for projects in that year. The excludes
  the cost of building control charges.

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Workload and project range.
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Expected outcomes.

• Early contractor involvement in design.

• A reduction in mission creep / spend.

• A significant reduction in tendering costs.

• Contracts operate on principle of actual costs
  (open book) and fixed elements for overheads and
  profits.

• Predicted cash savings of 4.5 on construction
  costs each year via smarter supply chain.

• Development of framework for supply chains.

• Greater certainty for time, cost and quality.

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What Next...

• Worcestershire County Council are to pursuing a
  Construction Framework. This will be undertaken
  irrespective of regional take-up.
• Beginning of the journey.team appointed to lead
  project.
• Undertaking an analysis of existing Frameworks
  to determine best option.
• Examining our own standing orders to enable
  changes to be introduced and ensuring political
  support.
• Setting time frame for the Framework to be in
  place ( 18mths.)
• Ensure that OJEU is constructed in such a way
  that others can join once they have seen the
  product.
• Exploring interest / response from potential
  partners.

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Contact details Peter Lines. RIBA. Design
Unit Manager plines_at_worcestershire.gov.uk
Questions...
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BARGAIN HUNT II 4th July 2008 Ian Humphreys -
NISP West Midlands Associate Director
The Business Opportunity
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What is Industrial Symbiosis ?

• Modified from Chertow, Yale 2000
• Industrial symbiosis engages traditionally
  separate industries and other organisations in a
  collective approach to competitive advantage
  involving physical exchanges of materials,
  energy, water and/or by products together with
  collaboration on the shared use of assets,
  logistics, experts and knowledge transfer.
• Connecting Industry Creating Opportunity

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Industrial Symbiosis for a circular economy
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• Use of Virgin resources
• Use of potable water
• Hazardous waste
• CO2 emissions
• Transport
• Pollution
• Landfill
• Costs
• Risk

NISP REDUCES
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• Jobs
• Sales
• Learning
• Bottom line
• Innovation
• New business
• Inward investment
• Knowledge transfer
• Utilisation of assets

NISP INCREASES
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What is NISP?
Regionally Delivered, Nationally Coordinated

• 12 regional offices across the UK - England,
  Wales, Scotland, N. Ireland
• 12 Business led Programme Advisory Groups
  (Michelin, Veolia, Lafarge, BMW, Bombardier etc)
• Benefits of national programme
• Funding from UK Govt. (Defra) but business
  initiative

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Who are we working with?

• NISP has over eight thousand members across the
  UK
• Membership includes individual entrepreneurs
  through to major corporations from
• a wide range of sectors including

• Chemical
• Pharmaceuticals
• Waste Management
• Universities

• Construction Demolition
• Aggregates Minerals
• Engineering
• Transport
• Logistics
• Facilitates knowledge transfer

• Automotive
• Public Services
• Local Authorities
• Food Drink
• Manufacturing

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Who are NISP 10,000 Members

• Premier Automotive Group
• BOC
• IKEA
• Johnson Matthey
• Wedgwood
• Sainsburys
• Rentokil
• Millennium Chemicals
• Lafarge Cement
• Coors Brewers
• Severn Trent
• Veolia
• Tarmac

• SMEs
• B.C.R Company
• GP Batteries
• Overtone Recycling
• Premier Waste
• Renewable Energy Growers
• Pennine Fibre Industries
• Firth Rixson Castings
• Country Chef
• The Cheese Co.
• Green BioDiesel
• Alutrade
• Betts
• Kingpin
• Auto Waste Solutions

• Micros
• Link Waste
• Arrow Environmental
• Marches Wood Energy Network
• Akristos
• Kito Engineering Solutions
• Facility Water Management
• Enviro (Grimsby)
• Clarkson Enterprises
• Sustainable Resources
• Advantage Waste Brokers
• UK Recycling
• Analytichem

• Corporates
• Marley Eternit
• NEC Ltd
• ConocoPhillips
• Anglian Water Services Ltd
• Associated British Ports
• SITA
• Scottish Newcastle
• Shell
• Peel Investments
• Foster Yeoman
• Bombardier
• Michelin
• Corus

• KEY POINTS
• Business led
• 10,000 members (May 2008)
• All sizes Multi-nationals, SMEs, Micros,
  Entrepreneurs
• All sectors dealing with all resources

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Business led Testimonials

• NISP goes beyond the traditional waste/process
  source approach, looking to allow its member
  companies to take advantage of a range of
  matching opportunities, from surplus space to
  good business practices.
• EP Laws, President for Safety, Health and
  Environment, Texaco
• Marley Eternit believes in NISP as the ideal
  vehicle for promoting and spreading the message
  of sustainability in a practical way.
• Ian Aspley, Manufacturing Director of Marley
  Eternit Ltd
• "From just one NISP workshop I believe we will
  make actual environmental improvements and reduce
  our site costs."
• Catherine Dent, Environment Leader, Unilever

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NISP Current Figures
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The Carbon Agenda

• NISP has reduced the UKs CO2 emissions by 3M
  tonnes in 3 years.
• Over a 5 year horizon this will increase to 20M
  tonnes.
• Cost of reduction 12.8p per tonne of CO2
  reduced.
• Potential to deliver 5 of UK commitment to Kyoto
  agreement by 2011.

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NISP West Midlands Case Studies
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Animal by-products to fuel cement kilns (John
Pointon Sons Ltd, Castle Cement)

• 150,000 tonnes animal by-products diverted from
  landfill
• 10 jobs created
• 277,000 tonnes CO2 reduction
• Best practice solution to aid IPPC application
• Compliant with Animal By-products Regulations
• Reduced disposal and raw fuel costs benefiting
  both companies

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Case Study Bone to Bricks
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NISP Current West Midlands Opportunities
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Anaerobic Digestion

• Severn Trent Capacity Opportunity
• 143,000 tonnes of treatment capacity in West
  Midlands
• Ideal feed stocks include food and drink waste
  streams
• Capacity available now throughout the region
• Low gate fee 15/tonne
• Full suite of acceptable EWC codes available on
  request.
• Severn Trent have requested NISP act as conduit
  for interested parties.

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• Location of
• AD Plants
• Minworth
• Coventry
• Stoke on Trent
• Shrewsbury
• Gloucester

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Anaerobic Digestion

• Animal Rendering Opportunity
• John Pointon Sons
• Building an energy park in the Stoke area
• Investigating composting opportunities
• Waste depackaging and anaerobic digestion
  opportunities.
• Looking to identify resource supply in region

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Cement Manufacturer

• Resource Supply Opportunity
• CEMEX looking for 230,000te of Climafuel in the
  region.
• Climafuel is solid commercial, industrial and
  Municipal Waste (lt10 moisture)
• Currently in discussion with Warwickshire
• Looking to form relationship with local authority
  to supply materials.
• 30,000 tonne of waste oil/solvents required for
  kiln firing.

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Pyrolysis Plant Opportunities

• Raw Material Bio diesel Supply Opportunity
• Investor looking to build gasification/bio fuel
  plant in Telford
• NISP currently helping to validate technology
  with Birmingham University.
• Will require 150,000te of Municipal Waste
  feedstock per annum.
• Biodiesel available as end product.
• Bioethanol plant in Oldbury (BHR Biofeuls)
• NISP assisting with grant funding
• Plant to be operational in 2008
• Requires 33,000te per annum waste oil feed stock
• Biofeuls
• Looking to collect vegetable oil in West Midlands
  Region

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Gulley Wastes Plastics

• FM Conway looking to build reprocessing plant off
  Jn6 of M6
• Fully operational plant in London
• Screen clean waste to aggregate materials
• Looking for supplies in the West Midlands
• Gulf Star Oil
• Turning mixed plastics to oils
• Ideally in partnership with MERF
• Looking for opportunities nationwide
• 500te/wk plus throughput
• Revaluetech
• Mixed plastics to kerb stones gt construction

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NISP West Midlands Regional Contacts

• 0845 094 9515
• www.nisp.org.uk
• Ian Humphreys ian.humphreys_at_nisp.org.uk